Journalism of Courage
In a substantial development,the city-based KPIT Cummins Infosystems Ltd,has taken over the California-based Sparta Consulting,a firm providing high end SAP solutions. The all-cash agreement of this transaction runs into Rs 180 crore ($38 million) which includes a bonus of $4 million.
The announcement on the merger was made on Friday by the top officials of KPIT Cummins including CEO and MD Kishor Patil,chief finance officer Anil Patwardhan and chief of Peoples Operations Sunil Tilekar.
Sparta Consulting is an 18-month old firm founded in 2007 by Paul Freudenberg and Lokesh Sikaria. Its presence is primarily in California with a unit in India located at Noida.
With over 1,000 consultants in the combined entity,the SAP-led consulting practice provides a scalable alternative to Tier I companies,which usually pursue larger ($25 million) multi- service opportunities.
Sparta s focus and footprint in the energy and utilities sector would provide KPIT a head start into this sector as well.
Its dynamic team and methodologies reinforces KPITs current strengths in value added SAP solutions to automotive,hi-tech and industrials. With the merger,it is now easy to tap the Europe and US market, Patil said.
Of the Rs 180 crore cash transaction,approximately 1/4 th is fixed,while the balance 3/4 th is dependent on achieving the predefined targets.
Patil added,With the global demand for SAP-based services growing at 24 per cent,Sparta has the potential to grow into a $ 100 million business in the next three years.
